All Forum Posts by: Dylan Grieve

@Jonathan Minerick Hmm, I may have to try this out. Thanks!

@Derek Jones; I haven't had it appraised, but I think it will appraise between 650-700k once everything is complete, which should be within another 4-6 weeks. The negative cashflow calculation pertains to my current mortgage. 

Based on careful consideration, I'm going to keep it, likely for a longer-term (5-10 years or more). I believe appreciation will win out in the end, and I'd rather just wait and hedge my bets on recouping loss over time, rather than take a guaranteed loss now. Assuming It does appraise for 700k, a cash out refi could provide a little 50k boost to pay off some of the high interest debt. 

Besides that, I'm lucky to have a job that provides a very healthy income, so I can carry this without too much pain, and can work extra to take care of the remaining debt pretty quickly. 

Assuming this house continues to appreciate, I'll pull equity and use it to fund purchases in other areas; I'm going to visit Phoenix soon...

So many good points to ponder. After some consideration, I think I'm going to just keep it. For those who asked, the house is in Sacramento, in what I would consider a "B+" neighborhood, if that means anything. I would say it's reasonable to expect that prices will flatten, but then continue to trend upwards, especially with more people filtering out of cities and into rural/suburban areas where they can have more space. 

I'm going to look at some markets outside of California, with more reasonable price/rent ratios, so I can accumulate some assets that are profitable from day 1. 

I very much appreciate everyone taking the time to comment. I'll try to remember and post when I get it rented, and when there's any new information. 

Wow, fast responses- thanks!

I just took a harder look, and I'm actually now closer to 184k out of pocket cost now. The mortgage balance is 515k, so I reckon it could potentially break even if I sold it. 

Has anyone done an FSBO to save costs? Or am I biting off more than I can chew?

Hello ladies and gents of bigger pockets.

I paid too much for my first house, and now am regretting it. 

Escrow closed this March, and I'm almost done rehabbing it; my out of pocket expenses (closing costs + rehab + mortgage holding costs) are running close to 160k. To fund this rehab, I took out a personal loan for 35k @ 12%, 20k on credit card @ 20%, and 42k HELOC @ 4%. In addition, I've paid 25k since March to hold the mortgage in this vacant house.

The only potential positive is that the house is in a historically high appreciation area, but it won't cashflow (I'll be -300 to -400/month with renters). Also, not sure I want to speculate on further appreciation, since I can't predict the future. 

I'm considering trying to get out of this, and take some loss, or, after the rehab is done, cash-out refi to pay off the high interest loans, and just rent it and eat the monthly loss. 

I bought the house for 550k, and based on comps, it should appraise between 650-700k in the next few months. 

I'm hoping to hear some perspectives on this matter, possibly an exit strategy or loss mitigation strategy that might be helpful. 

Thank you in advance for your comments. 

Hi, I’m looking at potentially building a tiny house in the Yosemite area, seeking anyone with experience for some information/quotes, as I’ve never done this before.

Looking forward to connecting!

Thanks

Dylan

@Daniella Ortiz - this is definitely a good place to connect with people. I've actually found a few really good people on here, who've helped me in a lot of ways. Just keep your eyes open, study, show people you're serious, and try to concentrate on how you might be able to benefit other investors who are more experienced. 

Good luck!

Jay, welcome aboard! Tons of good and free info here, and lots of friendly people; I think you'll find this is an excellent place to network. 

Welcome to Bigger Pockets Frank! Alot of good info here, and a good way to network with people.